All Forum Posts by: Dustin Thomas

We currently have promissory notes for a similiar business model and they range from 8-12% based on payback period. Happy to talk more if you have any questions. 

@Lex Wilridge I chose estimating rehab costs. We have been on point with our ARVs this year and I know rising market conditions made this a little bit easier than most other years. I feel like as a new RE investor, this last years market allowed us to make some mistakes and learn, rather than really smacking us. 
I have personally struggled to stay on top of and execute an established rehab process. On the year we will be 1/4 on sticking to our initial budget and the one success was on our first deal haha. 
@Account Closed 

Alright fam. Keep your secrets. ;)
haha @Account Closed

Thanks @Account Closed! 

That is right. We are listing 1118 W Summit in just a few weeks. I was shocked at the rise in home listing prices in just the 5 months we have been following the market. We have recently become interested in STRs in SA too. Good to know it is STR friendly.
@Ashlie Greising do you primarily co-host? We should chat sometime. I would love to learn more what youre up to. 

@Lex Wilridge @Qasim Naeem @Ashton Cleveland

Hello all, we recently received a new estimate from our GC on a flip property in San Antonio and the new estimate is about 50% higher than their initial one (the one prior to buying the home from the wholesaler to flip/receiving hard $$, etc).

At the moment, we are wondering if the right option is to try and cut bait to get out asap.

The 2 options that come to mind are:

1. Try to offload this deal asap for minimal loss
2. Continue to get quotes from GCs to get as close as we possibly can.

I welcome any other ideas. We are supposed to be fully under construction at this time and paying hard money by the day. Please reach out or comment if you would like to chat.

Initial Numbers

Purchase Price: $235k (from wholesaler)

Rehab: $145k

ARV: $490k

Thank you!

Dustin

@Sher J. Thanks! We actually saw a few projects underway when we purchased. I think if I were doing it over again I would have made the same mistake given that we were under the impression it was transitioning quicker.

Turns out, one individual owns the majority of the homes in the area and really controls the market. I had no way of knowing it even thinking about that when we purchased. 🤷‍♂️.

Happy with it. But lesson learned lol. That area will be booming one day! Just a little early for our project I think. 😬

@Rick Baggenstoss thank you so much! Those were all fantastic points! We will see what we can do. I sincerely appreciate the insights.

Dustin

(Business Partner of Kalebs) This was great experience for us. We bought in a Class D neighborhood under the impression it was transitioning a little faster though. When we bought there were two other flips in the neighborhood underway. Unfortunately, they have both been completed and sat still on the market for some time. 
Due the fact it is a Class D neighborhood, were thinking through the backup plan of refi--> rent in a few months but wondering how it might work if our best option is to use Section 8. If anyone has any advice in this arena that would be great. 
Are there other more creative ways to market this property? 

We have been scrubbing other deals in Atlanta over the last few weeks and they appear to be drying up as well. Another market we are entering is San Antonio. Please reach out if you have questions or would like to connect. 

Dustin

👋👋 Hey Johnny, I’m in Arlington, so not too far away. Happy to connect and talk more.